Trading Skyscrapers for Sunshine: The Journey from New York to Florida...Making Sure It's Done Right!

New York City's Population Is Dropping 2.49% Annually!

That's a big number with the percentage change from 2020-2024 sitting at 9.26%

We know that the reasons for leaving range from cost of living, crime, overall quality of life, and most certainly, the invisible hand of state and local governments taking an ever-growing amount of money from us through taxes.

So where are these former New Yorkers going?  Many are going to states with more reasonable taxing policies including Florida, Texas, Washington, Wyoming, Tennessee, Alaska, South Dakota, and New Hampshire.

But establishing citizenship in another state is not as easy as living there, with serious proof, for 6 months and a day per year.

These state governments facing a loss of population do not take the situation lightly, and will jump through hoops to disprove your new domicile claim.

You Need To Consult With An Expert!

Enter Chaves, Perlowitz, Luftig Special Counsel Marisa Friedrich, an expert in the area of Tax Controversy.

In our conversation Marisa and I touched on many subjects surrounding the emigration to other states, along with what has to be proven to the auditors so that no demand for taxes is made.

Change of domicile...

The burden of proof falls on the taxpayer, not the government, and for New York State five primary factors need to be proven for the domicile to be considered changed...

1. Home: An auditor's examination of an individual's "home" will consider the person's use and upkeep of their New York residence in comparison to their residence outside of New York. When a taxpayer purchases a new home in another state and maintains multiple residences, including at least one in New York, this factor becomes more complex to assess. In ambiguous cases, an auditor will evaluate the use of multiple homes based on the following criteria: (a) size of the residence; (b) value of the residence; (c) nature of use; and (d) other relevant home features.
2. Active Business Involvement: Taxpayers who are heavily involved in or have substantial investments in a New York trade, business, occupation, or profession will find this factor challenging during an audit and should prepare accordingly.
3. Time: This factor involves analyzing where and how an individual spends their time throughout the year, comparing the time spent in New York with the time spent elsewhere.
4. Items of Sentimental Value: This primary factor seeks to identify the location of items with significant sentimental value, such as family heirlooms, artworks, book collections, and personal items that enhance quality of life.
5. Family Connection: Due to its intrusive nature, the "Family Connection" factor is only considered when the first four primary factors do not clearly and convincingly indicate the taxpayer's intent. This factor generally focuses on the taxpayer's immediate family, such as a spouse or partner and any minor children. A key element is the location of the schools attended by the taxpayer's minor children.

If you are thinking about a change in your New York domicile status or are in the middle of a change, you would be well served to speak with an expert on the subject like Marisa Friedrich at Chaves Perlowitz Luftig!

To contact Marisa...

Email: mfriedrich@cpllawfirm.com

Phone: (212) 791-3747

CPL Website: https://cpllawfirm.com/

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